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The Effects of Delays on the Stability and Rate of Convergence to Equilibrium of Oligopolies

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  • ALLEN M. RUSSELL
  • JOHN A. RICKARD
  • T.D. HOWROYD

Abstract

The stability of oligopolies is investigated using the Cournot strategy and a general output adjustment procedure. Information delays are incorporated in the adjustment procedure and their specific effects upon the dynamic stability of oligopolies is investigated. The stability of equilibrium for discrete models is unaffected by information delays and remoteness of planning horizons; however the rate of convergence to equilibrium may be slowed. For continuous models with delays, some restraints are required for stability.

Suggested Citation

  • Allen M. Russell & John A. Rickard & T.D. Howroyd, 1986. "The Effects of Delays on the Stability and Rate of Convergence to Equilibrium of Oligopolies," The Economic Record, The Economic Society of Australia, vol. 62(2), pages 194-198, June.
    • Handle: RePEc:bla:ecorec:v:62:y:1986:i:2:p:194-198
    DOI: 10.1111/j.1475-4932.1986.tb00894.x
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    6. Howroyd, T. D. & Russell, A. M., 1984. "Cournot oligopoly models with time delays," Journal of Mathematical Economics, Elsevier, vol. 13(2), pages 97-103, October.
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    Cited by:

    1. Fausto Cavalli & Ahmad Naimzada & Mauro Sodini, 2018. "Oligopoly models with different learning and production time scales," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 41(2), pages 297-312, November.
    2. Carl Chiarella & Ferenc Szidarovszky, 2002. "The Birth of Limit Cycles in Nonlinear Oligopolies with Continuously Distributed Information Lags," International Series in Operations Research & Management Science, in: Moshe Dror & Pierre L’Ecuyer & Ferenc Szidarovszky (ed.), Modeling Uncertainty, chapter 0, pages 249-268, Springer.
    3. Antonio Doria, Francisco, 2011. "J.B. Rosser Jr. , Handbook of Research on Complexity, Edward Elgar, Cheltenham, UK--Northampton, MA, USA (2009) 436 + viii pp., index, ISBN 978 1 84542 089 5 (cased)," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 196-204, April.
    4. Chiarella, C., 1991. "The birth of limit cycles in Cournot oligopoly models with time delays," Pure Mathematics and Applications, Department of Mathematics, Corvinus University of Budapest, vol. 2(2-3), pages 81-92.
    5. Troy Tassier, 2013. "Handbook of Research on Complexity, by J. Barkley Rosser, Jr. and Edward Elgar," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 39(1), pages 132-133.

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